Yes,
Just make sure it is a true owner carry, not a lease purchase or wrap.
Good luck and happy house hunting.
Brad Bergamini
The Bergamini Group

Yes with an owner carry you are still purchasing the home and the home will still change title. With an owner carry the owner is simply a lien holder just like a bank, so if you qualify for the tax credit you will still do so with an owner carry.
Good luck to you and please let me know if you have additional questions.

You will have to check with a CPA to be sure but you may take the credit if:

"the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title".

Factors that indicate that a taxpayer has the benefits and burdens of ownership include:

1. the right of possession,
2. the right to obtain legal title upon full payment of the purchase price,
3. the right to construct improvements,
4. the obligation to pay property taxes,
5. the risk of loss,
6. the responsibility to insure the property and
7. the duty to maintain the property. (New 7/2/09)

Hope this helps.